Even with many states starting to open up after the lockdown quarantine caused by the coronavirus, many companies are filing for bankruptcy – several months without income and mounting debt is an awful combination.
Many huge companies have filed for bankruptcy, and the list continues to grow. Well known brands have declared bankruptcy, including J.C. Penney, Neiman Marcus, J. Crew, Gold’s Gym, Tuesday Morning, Bar Louie, Dean & DeLuca, Advantage Rent a Car, and Hertz.
Coresight Research is a company that tracks retail openings and closings, and at the beginning of the year, they projected that 8,000 stores would close this year. They’ve recently updated their projection to 25,000.
These companies won’t necessarily go out of business – filing for bankruptcy allows protection during a restructure, so debt can be shed, operations can be redesigned, and low-profit locations can be closed. (more…)